TAMPA, Fla. \u2014 Europe\u2019s investment arm is lending Luxembourg-based OQ Technology 25 million euros ($30 million) to expand its direct-to-device constellation, bolstering the continent\u2019s push to compete with U.S.-led efforts to connect smartphones from space.<\/p>\n
The European Investment Bank (EIB) debt will support the deployment of more than 20 small satellites, OQ Technology announced Feb. 25, including its first dedicated to providing smartphone connectivity<\/a> in C-band that is slated for launch in the middle of this year.<\/p>\n OQ Technology currently uses S-band to connect proprietary and mass-market off-the-grid tracking and monitoring devices, after deploying 10 Internet of Things (IoT) satellites in low Earth orbit.<\/p>\n Last year, the operator used one of those satellites to transmit a test emergency broadcast message to unmodified smartphones, demonstrating early direct-to-device (D2D) capability.<\/p>\n C-band promises greater bandwidth than S-band, and additional spacecraft would improve coverage and latency for what OQ Technology intends to be a multi-band constellation serving IoT and smartphone devices.<\/p>\n Europe\u2019s D2D answer<\/p>\n The financing comes as U.S.-based operators have taken an early lead in the emerging D2D market.<\/p>\n SpaceX is already providing messaging and limited data services in multiple countries as it seeks access to C-band and other spectrum to expand capabilities.<\/p>\n AST SpaceMobile, also based in the United States, aims to ramp up satellite deployments this year and recently won a $30 million<\/a> U.S. Space Development Agency contract to demonstrate D2D broadband connectivity for military applications.<\/p>\n \u201cSpace is a globally fast-growing sector and OQ Technology is onboard the race,\u201d Andrius Kubilius, European Commissioner for Defence and Space, said in a statement.<\/p>\n \u201cEurope needs to capture this growth for its competitiveness, resilience and autonomy.\u201d<\/p>\n Financial terms of OQ Technology\u2019s debt were not disclosed. The financing is backed by the European Commission\u2019s InvestEU program, which uses an EU budget guarantee to mobilize public and private capital for strategic sectors such as space.<\/p>\n The move follows earlier EIB backing for Spanish satellite operator Sateliot<\/a> in 2024, which has outlined ambitions to expand from 5G-compatible IoT services into direct-to-smartphone connectivity<\/a>.<\/p>\n Prioritizing institutional capital<\/p>\n OQ Technology raised 13 million euros in a Series A round in 2022, co-led by Saudi oil and gas company Aramco\u2019s venture capital arm and a fund managed by Greek early-stage investor 5G Ventures.<\/p>\n The company had sought a larger 30 million euro Series B round that included a 15 million euro commitment from Luxembourg Space Sector Development (LSSD)<\/a>, a government-backed initiative co-run with SES, the multi-orbit satellite operator also based in Luxembourg.<\/p>\n